Becker's Healthcare March 13, 2025
The federal government will spend $84 billion more on Medicare Advantage enrollees than if they were enrolled in fee-for-service plans, according to new estimates from the Medicare Payment and Advisory Commission.
MedPAC, which advises Congress on Medicare policy, published its annual report March 13.
The group estimated that CMS will spend 20% more on Medicare beneficiaries enrolled in MA plans than if those beneficiaries were enrolled in fee-for-service in 2025.
Here are 10 things to know:
- According to MedPAC, there are two factors accounting for the majority of overpayments to MA plans: coding intensity and favorable selection.
- MA plans are paid based on enrollees’ health risk scores. MedPAC estimated in 2025, risk scores for MA...
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